Kerala High Court
Kerala State Cashew Development ... vs Regional Provident Fund Commissioner, ... on 12 November, 2024
Author: N.Nagaresh
Bench: N.Nagaresh
2024:KER:84484
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 12TH DAY OF NOVEMBER 2024 / 21ST KARTHIKA, 1946
WP(C) NO. 39340 OF 2024
PETITIONER:
KERALA STATE CASHEW DEVELOPMENT CORPORATION LTD,
REPRESENTED BY ITS MANAGING DIRECTOR
P.B.NO.13, CASHEW HOUSE,
MUNDAKKAL, KOLLAM, PIN - 691001
BY ADVS.
SRI.VIPIN P.VARGHESE, SC, KERALA STATE CASHEW
DEVELOPMENT CORPORATION LTD.
SRI.ADARSH MATHEW
SRI.ANIRUDH G. KAMATH
SRI.AGUSTHO NORBERT
SMT.ANNA B.
RESPONDENT:
REGIONAL PROVIDENT FUND COMMISSIONER,
KOCHI
REGIONAL OFFICE, BHAVISHYANIDHI BHAWAN,
KALOOR, KOCHI, PIN - 682017
BY ADV S.PRASANTH
SRI. SAJEEV KUMAR K. GOPAL,SC
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 12.11.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) NO.39340 OF 2024
2
JUDGMENT
Dated this the 12th day of November, 2024
The petitioner is a Corporate Entity fully owned by the
Government of Kerala and operates 30 cashew factories
across the State. The respondent is an authorized officer of
the Employee's Provident Fund Organisation with the
authority to impose interest under Section 7Q of the
Employee's Provident Funds and Miscellaneous Provisions
Act, 1952.
2. The writ petition has been filed seeking instalment
based remittance of interest amounting to ₹11,42,525/-
under Section 7Q of the Employees Provident Funds and
Miscellaneous Provisions Act, 1952 specifically for Factory
No.7 of the petitioner situated at Nooranad, Alappuzha. This
interest is computed in respect of remittance for the period
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WP(C) NO.39340 OF 2024
01.08.2018 to 31.03.2024. Order No.KR / KCH / 1152 /
Damages / Proceedings / 2023-2024 seeking the payment of
interest was passed by the respondent on 07.06.2024.
3. The delay in the payment of contributions under
the Act, 1952 is attributed solely to the financial constraints
faced by the petitioner and is not a result of willful
non-compliance. The entirety of funds available in the
Corporation's current account represents the sole Working
Capital currently allocated by the Government. Any coercive
measures taken to attach funds from this account would
result in substantial loss to the Corporation, closure of
factories and the consequent loss of livelihoods for over a
thousand individuals, contends the petitioner.
4. Standing Counsel entered appearance on behalf
of Employees Provident Fund Organisation and resisted the
writ petition. The Standing Counsel submitted that the
petitioner has deliberately defaulted in making Provident
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WP(C) NO.39340 OF 2024
Fund contribution in respect of their employees. In spite of
repeated reminders, the petitioner did not remit the dues. It
is in such circumstances that Section 7Q proceedings were
initiated. However, taking into consideration the fact that the
petitioner is a State Public Sector Undertaking, a breathing
time can be granted to the petitioner for remitting the dues,
submitted the Standing Counsel.
5. Taking into consideration the fact that the
petitioner is a State Public Sector Undertaking and the
petitioner has been making Provident Fund remittances
otherwise promptly, I am of the view that instalment facility
can be granted to the petitioner to clear the dues as reflected
in Ext.P1.
The writ petition is accordingly disposed of permitting
the petitioner to remit the dues as per Ext.P1 in 12
consecutive and equal monthly instalments. The first of such
instalments shall be paid on or before 16.12.2024. It is made
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WP(C) NO.39340 OF 2024
clear that if the petitioner commits two consecutive defaults
in making payments as directed above, the respondent will
be at liberty to proceed in accordance with law.
Sd/-
N.NAGARESH
JUDGE
hmh
2024:KER:84484
WP(C) NO.39340 OF 2024
APPENDIX OF WP(C) 39340/2024
PETITIONER'S EXHIBITS
Exhibit P1 THE TRUE COPY OF THE RESPONDENT'S
ORDER NOKR/ KCH/ 1152/ DAMAGES/
PROCEEDINGS/ 2023-24 DATED 07.06.2024
Exhibit P2 THE TRUE COPY OF THE PROFIT AND LOSS
STATEMENT PERTAINING TO 2018-2019 YEAR
Exhibit P3 THE TRUE COPY OF THE STATEMENT OF
PROFIT AND LOSS PERTAINING TO THE
FISCAL YEAR 2019-2020
Exhibit P4 THE TRUE COPY OF THE STATEMENT OF
PROFIT AND LOSS OF THE 2020-2021 YEAR
Exhibit P5 THE TRUE COPY OF THE STATEMENT OF
PROFIT AND LOSS OF 2021-2022
Exhibit P6 THE TRUE COPY OF THE PROFIT AND LOSS
STATEMENTS OF THE APPELLANT OF THE
YEAR 2022-2023
Exhibit P7 THE TRUE COPY OF THE JUDGMENT DATED
13.03.2023 IN W.P.C 8091 OF 2023
PASSED BY HON'BLE HIGH COURT OF KERALA
